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Pavlova-9 [17]
3 years ago
14

A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It

is estimated that the machine could produce 750,000 bolts of woven fabric over its useful life. In the first year, 105,000 bolts were produced. In the second year, production increased to 109,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?
Business
1 answer:
Sholpan [36]3 years ago
3 0

Answer:

The amount of depreciation expense that should be recorded for the second year: $26,160

Explanation:

The units-of-production depreciation method is calculated by using the following formula:

Depreciation Expense = [(Cost of asset − Residual Value)/Life in Number of Units] x Number of Units Produced  = Depreciation Expense per unit x Number of Units Produced

In the company,

Depreciation Expense per bolt = ($190,000 - $10,000)/750,000 = $0.24

In the second year, 109,000 bolts were produced,

Depreciation expense for the second year = $0.24 x 109,000 = $26,160

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Your city newspaper publishes a "Best of" poll that lists its readers' favorite restaurants. Mundo Bar and Grill is ranked as th
jeka94

Answer:

The correct answer is the option C: give too much weight to a small number of vivid observations.

Explanation:

To begin with, in the case that a close friend had told you that he had a bad experience in a certain place, a restaurant in particular this time, does not states the fact that it will always be like that for every person that goes to that place because it may have been a bad day for the employees and that impacts at their work while if you go any other day every detail is taking care nicely. Therefore that the people give too much  weight to small number of vivid observations due to the fact that the article published in the newspaper must have been made with over dozens of observations and comments, not just one, and the major agreement is that those places are good ones to go to eat.

8 0
3 years ago
Read 2 more answers
Titanic Roofing Company has estimated the following amounts for its next fiscal​ year: Total fixed costs $ 840 comma 000 Sale pr
Nina [5.8K]

Answer:

Operating income increases by $40,000.

Explanation:

Given that,

Total fixed costs = $840,000

Sale price per unit = $60

Variable cost per unit = $30

Additional amount spend on advertising = $35,000

Sales volume would increase by 2,500 units.

Contribution margin:

= Sales - Variable costs

= $60 - $30

= $30 per unit

Increase in operating income:

= Increase in contribution margin - Increase in Fixed costs

= ($30 × 2,500 units) - $35,000

= $75,000 - $35,000

= $40,000

3 0
3 years ago
Whispering Company sells goods that cost $301,000 to Ricard Company for $402,000 on January 2, 2020. The sales price includes an
Jobisdone [24]

Answer:

The amount of revenue to be recognized at 31st March is $383500

Explanation:

The revenue amount that should be recognized in the income statement as at March 31,2020 is the  sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.

Hence, the amount of revenue as at 31st March is calculated thus:

Sales price                                                                     $365000

Installation fee for 3 months(3/6*$37000)                   <u>$18500</u>

Total revenue as at 31st March                                    $ 383,500

The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months

7 0
3 years ago
Veneer Company has two service departments and two producing departments. The number of employees in each department is: Personn
Vadim26 [7]

Answer:

$13,532 .00

Explanation:

The cost allocation is usually based on a measurable factor such as area occupied, number of students etc. The more the measurable factor related to a unit/department, the more the cost assigned to the departments on the basis of the size of the measurable value.

Total number of employees

= 640

the amount of cost allocated to Department B under the direct method would be

= 199/640 * $43,520

= $13,532

3 0
3 years ago
Weiland Co. shows the following information on its 2019 income statement: sales = $162,500; costs = $80,000; other expenses = $3
MrMuchimi

Answer:

a. 2019 Operating cash flow

Welland Co. Operating Cash Flow for 2019

Particular                              Amount $

Sales                                            162500

Cost of goods sold    80000

Other Expenses         3300

Depreciation               9000         <u>92,300</u>

EBIT                                               70200

Less: Taxes                                   22295

Add :Depreciation                         <u>9000</u>

Operating Cash Flow                 $<u>56905</u>

b. Cash flow to creditors

Interest paid                    6500

Add: Loan raised             <u>7700</u>

Cash flow to creditors      <u>14200</u>

c. Cash flow to Stockholders

Dividends Paid                         8150

Less: Net Equity Raised          <u>4500</u>

Cash flow to Stockholders   <u>$3650</u>

d. Change in Net working Capital = Change in Current Assets - Change in  Liabilities

Figures for Current Asset was not given, rather the Net Fixed asset is given $21,100 which is not a current asset.

6 0
3 years ago
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